Bharti Airtel and the Tata Group have announced the termination of discussions to merge their direct-to-home (DTH) television businesses — Airtel Digital TV and Tata Play — after failing to reach a mutually agreeable resolution.
In a regulatory filing late Saturday, Airtel said, "After not being able to find a satisfactory resolution, the parties have mutually decided to terminate the discussions."
Also Read: Tata Play, Airtel Digital TV Set to Merge Amid DTH Industry Decline: Report
Airtel and Tata Group End Merger Discussions
"This is in reference to our intimation dated February 26, 2025, wherein the Company informed that it is in bilateral discussions with TATA Group to explore a potential combination of TATA Group's Direct To Home (DTH) business housed under Tata Play Limited with Bharti Telemedia Limited, a subsidiary of the Company," Airtel said on May 3, 2025.
The two companies had been in talks to merge their DTH operations. According to previous reports, the proposed merger was expected to give Airtel a majority stake of around 52–55 percent in the combined entity, while the remaining 45–48 percent would be held by Tata Play's shareholders, including Walt Disney Co.
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Valuation and Strategic Implications
Both businesses were reportedly valued in the range of Rs 6,000–7,000 crore each. The merger, had it gone through, would have marked the second major consolidation in India’s DTH space after the Dish TV-Videocon d2H merger in 2016.
Tata Play
Tata Play, India's largest DTH provider, was formerly known as Tata Sky and began as a joint venture between the Tata Group and Rupert Murdoch's News Corp. Walt Disney acquired News Corp's stake in Tata Play as part of its global acquisition of 21st Century Fox. Tata Sons, the holding company of the Tata Group, currently owns 70 percent in Tata Play, reportedly having bought Singapore-based Temasek's 10 percent stake in April 2024 for Rs 835 crore, valuing the company at approximately USD 1 billion.
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Airtel IPTV Service
The deal was seen as a strategic move to bolster Airtel's non-mobile revenue streams amid a rapidly changing media landscape, with consumers increasingly shifting to digital streaming platforms.
Airtel recently launched an IPTV service on top of its fiber infrastructure to transform the entertainment landscape in India. With the deal now off the table, both Airtel and Tata Group are expected to explore independent strategies for their respective DTH businesses.
